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DECREE No

DECREE No.196-CP ON THE 31ST OF DECEMBER 1994 OF THE GOVERNMENT STIPULATING DETAILED PROVISIONS AND GUIDANCE FOR THE IMPLEMENTATION OF A NUMBER OF ARTICLES OF THE LABOR CODE ON COLLECTIVE LABOR BARGAIN

THE GOVERNMENT

Pursuant to the Law on Organization of the Government on the 30th of September 1992;

Proceeding from the Labor Code on the 23rd of June 1994;

At the proposal of the Minister of Labor, War Invalids and Social Affairs,

DECREES:

Chapter I

SUBJECTS AND SCOPE OF REGULATION OF COLLECTIVE LABOR BARGAINS

Article 1.-

1. The subjects and scope of regulation of collective labor bargains stipulated in Articles 2, 3, 4 and 44 of the Labor Code are the following:

- The State-owned enterprises;

- The enterprises of the other economic sectors and the organizations and individuals that employ 10 or more laborers;

- The enterprises having foreign investment; the enterprises belonging to export-processing and industrial zones;

- The foreign or international offices and organizations in Vietnam that employ 10 or more Vietnamese laborers, unless otherwise provided for by international conventions that the Socialist Republic of Vietnam has signed or acceded to.

The independently-financed services of the administrative and public service units are allowed to apply a number of points stipulated in Article 2 of this Decree to negotiate and sign collective labor bargains.

2. The subjects and scope not applicable to collective labor bargain include:

- Public employees and officials working at administrative and public services of the State;

- Employees in people's organizations and social and political organizations;

- Employees in specialized enterprises of the People's Army and People's Security Forces; officers, non-commissioned officers and soldiers of the People's Army and People's Security Forces.

Chapter II

CONTENT OF THE COLLECTIVE ABOR BARGAIN

Article 2.-

1. The main content of the collective labor bargain stipulated in Item 2, Article 46 of the Labor Code includes:

a) Job and job security: the measures for job security; the type of labor contracts for each category of labor or jobs; the circumstances for termination of labor contracts; the allowances for job resignation, severance and suspension; the upgrading of professional skills, the retraining in case of technological changes or production reorganization; the principles and time for temporary assignment of laborers to other jobs.

b) The work and rest time: the provisions on the length of work time during a day and a week; the arrangement of work shifts; the break time suitable for each category of profession and work; the weekly day-off and holiday; the annual leave, including the traveling time; the leave on personal affairs; the principles on and cases of requested overtime work.

c) The salary, salary-indexing allowances and bonuses: the base or average salary (monthly or daily or hourly); the salary scale at the enterprise; the measures to ensure real income and the indexing measures for salaries in face of fluctuating market prices; the principles of salary payment (by time, products or piece-work); the principles for designing and adjusting salaries; the principles and conditions for salary raises; the types of salary-indexing allowances; the time for monthly salary payment; the payment of annual leave and related expenses; the salary for overtime work; the bonuses (irregular, monthly, year-end, high-quality reward, profit reward) and their principles (a specific regulation may be attached).

d) Labor quotas: the principles and methods for designing the quotas, their trial application, formalization and adjustment; the types of quotas for different types of labor; the average and advanced quotas applied in the enterprises; the measures to apply to cases of non-fulfillment of the quotas; the principles for piece-work on labor and materials (if any).

e) Labor safety and hygiene: the measures to ensure labor safety and hygiene; the standards for and the supply of labor-safety instruments; the regimes of in-kind compensation; the measures to improve working conditions; the compensation for labor accidents and occupational diseases (a specific regulation may be attached).

f) Social securities: the provisions on the responsibility and interests of the employer and the laborers in contributing, collecting and paying social insurances.

2. Apart from the said contents, the concerned parties may bargain on other contents, such as the modalities for settlement of labor disputes; mid-shift meals; collective welfare; allowances for funerals and marriages, etc.

Chapter III

THE MODALITIES FOR NEGOTIATING, SIGNING AND REGISTERING COLLECTIVE LABOR BARGAINS

Article 3.- The negotiations and signing of collective labor bargains in accordance with Article 45 and Item 1, Article 46, of the Labor Code are conducted according to the following modalities:

1. The party which proposes to negotiate and sign a collective labor bargain shall inform in writing the other party of the content of the proposed bargain.

The content of the collective labor party shall be proposed by the Executive Committee of the local trade union organization, or by the provisional trade union organization.

2. The party to which the proposal is addressed shall accept negotiating and shall take the initiative to meet with the proposing party to agree on the time and location of the negotiation and the number of delegates to it.

3. The employer is responsible for arranging for the two parties to meet and negotiate.

The result of the negotiation shall serve as the basis for designing the collective labor bargain at the enterprise or unit.

4. The local or provisional trade union organization shall organize polls for collective opinions on the content of the proposed collective labor bargain.

If more than 50% of the laborers in the collective agree with the proposed bargain, then the two parties shall sign it.

5. The collective labor bargain must be prepared in set forms.

Article 4.- The polling of collective opinions on the content of the collective labor bargain shall be conducted through a collection of signatures or a show of hands.

The result of the poll must be recorded in a minute which shall specify the total number of polled people, the yes votes, the no votes, the provisions which are not agreed upon and the percentage of the no votes. The minute must bear the signature of the representative of the Executive Committee of the local trade union organization.

In registering the collective labor bargain with the labor office, this minute must be attached.

Article 5.- The registering of the collective labor bargain in accordance with Article 47 and Item 3, Article 48, of the Labor Code, is provided for as follows:

1. Within 10 days from the date of the signing of the collective labor bargain, the employer shall send the collective labor bargain to the Labor, War Invalids and Social Affairs Service of the province or city directly under the Central Government, where his/her enterprise or organization is located, for registration.

2. The enterprise which belongs to the export-processing or industrial zone shall send this collective labor bargain to the Managing Board of the zone for registration at the Labor, War Invalids and Social Affairs Service of the province or city directly under the Central Government, where the Managing Board is headquartered.

3. Within 15 days from the receipt of the collective labor bargain, the Labor, War Invalids and Social Affairs Service of the province or city directly under the Central Government shall consider and inform in writing both concerned parties of the registration. If the collective labor bargain contains provisions which are contrary to law, the Service shall point them out clearly and guide both parties to make changes to it for registration.

Article 6.- In the event of a merger of enterprises as stipulated in Item 1, Article 52, of the Labor Code, the signed collective labor bargain shall be settled as follows:

1. If the merger does not lead the member enterprises to changes in their functions, jurisdiction and organizations, the signed collective labor bargains, which have not expired, shall continue to apply till expiration or a new collective labor bargain is signed.

2. If the merger leads the member enterprises to a change in their functions, jurisdiction and organizations, the signed collective labor bargains shall cease to apply, and the concerned parties shall start negotiating for a new collective labor bargain within six months from the merger.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 7.- This Decree takes effect from the 1st of January, 1995, and replaces all previous regulations on collective labor bargain.

The collective labor bargains which have been signed and are already in effect but which contain provisions which are contrary to the Labor Code and this Decree shall be amended within six months from the effective date of this Decree. The provisions which have to be amended or supplemented must be agreed upon, signed and registered again in accordance with the modalities defined by the Labor Code and this Decree.

Article 8.- The Ministry of Labor, War Invalids and Social Affairs, in coordination with the Vietnam General Confederation of Labor, shall organize pilot cases of signing collective labor bargain within its own office and submit to the Government for approval.

Article 9.- The Ministers, the Heads of the agencies at ministerial level, the Heads of the agencies attached to the Government, and the Presidents of the People's Committees of the provinces and cities directly under the Central Government, are responsible for the implementation of this Decree.

On behalf of the Government

Prime Minister

VO VAN KIET